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PRESCRIPTION
Deals with drugs and treatment used in conjunction with healthcare professionals only
– the drug component reflects medicines prescribed by a registered physician and thereafter dispensed with a prescription
– the treatment component relates to invasive and non-invasive technologies supporting select and potentially dire morbidities
WOMEN’S HEALTH DERMATOLOGYRESPIRATORY
tAND UROLOGYOPHTHALMICCARDIOVASCULARGENERICSMARKET TRENDSBUSINESS FOCUSGENERICS
t Capitalise on critical mass in therapeutic areas to
support sustained profitable business growth
t Leverage operations to support additional partners,
t Extend the product line through alliances with MNC’s
and acquire “new chemical entity” (NCE) products
t Funders encourage switching from t Ageing population result in
GENERICS
t Profitable business growth through innovation and early
t Intensely competitive environment t Regulations supporting generic
ADCOCK INGRAM INTEGRATED REPORT 2013TURNOVERTOP 10 BRANDS’ TURNOVERCONTRIBUTION AFTER MARKETING EXPENSES
This division markets and sells a portfolio of owned prescription brands
Respiratory – creative sales initiatives to promote Solphyllex (cough
as well as brands from multi-national companies (MNCs) with whom
syrup) produced sales in excess of R40 million for this owned brand.
the Group has various alliances. The latter arrangements are based on synergistic and mutually beneficial collaborations supporting the
Pain – Myprodol held its position in a highly genericised and
commercialisation and distribution of selected brands in South Africa.
competitive environment with Adcock Ingram’s own generic, Gen-
This strategy has enabled the Group to build critical mass in defined
payne growing by 28%. Synaleve was relaunched successfully in the
therapeutic categories and develop targeted therapeutic focus in
moderate to severe pain sector and the business has ambitious hopes for this product as an alternative to previously discontinued DPP-
terms of knowledge, skills and commercial competence. The attendant
benefits of this strategy have facilitated the building of resource and investment in world-class marketing, sales and distribution capabilities
Anti-retroviral (ARV) treatments – supply constraints and higher than
which supports both our own and MNC portfolios.
anticipated demand at the beginning of the year inhibited the Group’s
PERFORMANCE
performance in the ARV tender market. The tender, worth an estimated R800 million over two years, continues to the end of 2014, in which
Growth was recorded in all major categories in terms of owned
Adcock Ingram provides a basket of 13 products. With the launch
originator brands. The Group’s relationship with MNCs, including Novo
of Trivenz, the Group already participates in buy-outs for the triple-
Nordisk, Roche, Novartis, MSD, Lilly, and a new partner, Lundbeck
Pharmaceuticals, is also bearing fruit. The satisfactory sales results were achieved despite difficult trading conditions and competition from
Generics – Adco-Atorvastatin, a newer generation molecule for the
treatment of hypercholesterolaemia, was launched. Despite being seventh to market at launch, Adco-Atorvastatin achieved a 10% market
Our latest MNC partner, Lundbeck Pharmaceuticals, is a global leader
share in the first six months. Script volumes are gaining momentum,
in central nervous system and brain disorders markets. Their product
with the Adco product being the fourth most prescribed atorvastatin.
range includes a variety of products, including the market leading brand, Cipralex. This collaboration, which became effective in January
Adco-Fem35 (contraceptive) was relaunched successfully, and educational
2013, has seen a dramatic turn-around in performance with market
campaigns in the media yielded positive sales growth. Adco-Fem35 is now
share gains and sales growth for all Lundbeck brands.
the fastest growing product in its class.
Adco Generics maintained the No. 2 position in the generics market in
Renewed focus on customer relationships and tailored strategies
volume terms. Five new products launched in 2013 contributed to growth,
to meet specific customer needs, are contributing to growth in this
with new products accounting for turnover of approximately R30 million.
New products are expected to increase the Group’s value share of the
OPPORTUNITIES
generics market, with six new products planned for launch in 2014.
Expanding the MNC programme by adding new partners, additional products from existing partners, as well as extending the programme into
Profitability was impeded as a result of the Single Exit Price (SEP)
the Rest of Africa are opportunities for the Group.
increase being limited to only 5,8%, effective March 2013, against an average 14% devaluation of the Rand against the basket of currencies
New product introductions planned for 2014 include the acquisition
in which the division’s active ingredients and finished products are
of NCE patented products from existing and prospective partners. This
procured, and the change in mix with higher volumes of low-margin
will broaden the base of owned brands, offering increasingly exciting
opportunities for profitable growth.HIGHLIGHTS
The comprehensive basket of ARV’s, including a triple-combination
Women’s Health – this portfolio achieved excellent results, bolstered
dosage, will facilitate growth in the private market.
by the relationships established with key partners. The consequent critical mass in this category enabled the Group to extract improved
The critical mass developed in major therapeutic categories enables
performances on own brands such as Estropause (HRT) and Urispas (UTI).
the division to develop relationships with health professionals through an extensive continuing professional education programme. Activities
Marketing strategies included consumer education and interaction
include therapeutic category-directed meetings including Adcock
with consumers via social media. These strategies have provided a
Ingram’s successful and highly publicised Healthcare Summit.
valuable base for brand specific promotions in the future.
Healthcare funders’ efforts to contain medicines costs by encouraging
An innovative marketing strategy has been initiated for a unique
the use of generic medicines and the increasing membership of
product, Vagifem, for vaginal dryness. The unique technology inherent
medical schemes (especially low cost options) will provide market
in the product has created an entirely new market segment for this
growth in the generics category. Development of further relationships
category. A major consumer education programme was launched
with funders will ensure that the Group’s products are included on
at the end of the year which included a full media campaign,
incorporating washroom posters and advertorials in leading
Chronic generic medicines offer significant growth potential as a result
magazines. This programme will create awareness that this condition is
of a growing middle class market and an increasing ageing population.
not unusual and that there is a solution.Dermatology – Dovobet (psoriasis treatment) enjoys market leadership CHALLENGES
with an 80% share of the psoriasis market. Further penetration in the
The increasing trend towards cheaper generic products in the
psoriasis market gained momentum with the introduction of Xamiol
market does pose a threat to certain of the multi-national brands.
(from Leo Pharmaceuticals), a first line treatment for psoriasis of the
Adverse currency fluctuations, the cost of compliance with increasing
scalp. This initiative supports our ambitions of market expansion in the
regulatory standards, competition and pressure exerted by healthcare
categories where we compete. Roaccutane (from Roche) and owned
funders to lower prices, impacts margins and profitability. The slow regulatory process affects the Group’s ability to launch new generic
generic Acnetane (acne treatments) recorded impressive share gains and
products. New product launches with ‘first to market’ status are key
entrenched the Group’s leading position in the anti-acne class.
strategies to counter margin declines.
ADCOCK INGRAM INTEGRATED REPORT 2013